Tracking Key Indicators of Private Debt in Mexico with Alphacast
Tracking Key Indicators of Private Debt in Mexico with Alphacast
By Martina Mas(mmas@alphacast.io)
Read more Alphacast Highlights here
Short-term private debt instruments play an essential role in the Mexican financial system, providing liquidity to the economy and serving as a tool for short-term financing. Having up-to-date information every week not only keeps you informed about the current status of short-term instruments, but also enables you to generate your own data in the form of graphs, dashboards or insights as the ones that will be showed next.
Our dataset Short-Term Private Debt Instruments contains weekly information of those Banxico's indicators and displays the two instruments we can find within it: commercial papers and private certificates. The first one refers to unsecured, short-term debt issued by corporations to fund their day-to-day operations. On the other hand, private certificates are short-term debt securities issued by private financial institutions traded in money markets.
With Alphacast, you collect and organize valuable numbers about the Mexican financial market. For example, it is possible to track the volume of new issuances of commercial paper with weekly indicators, as well as monitor the total amount of outstanding debt in the market with the outstanding stock indicators.
Total Short Term Indicators
The initial step to delve into Mexico's financials using AlphaCast can be creating charts for comparative analysis. One effective approach would be to show weekly private short-term debt indicators versus their quarterly averages. Effortlessly, in pipelines you can calculate the quarterly average of a weekly data by utilizing the Long to Wide, Change Frequency and Wide to Long steps.
In our example, it's showed that the average weekly issuance for the second quarter has decreased, and the values of the recent weeks barely surpass this baseline. On the other hand, for maturity days, the second-quarter average exceeds the first-period average, and the weekly values consistently exhibit higher figures. Likewise, the chart on yout left illustrates a similar comparison but for interest rates, revealing that in the recent weeks, the rates have exceeded the 12% average.
Private Certificates
It is important to keep in mind that the absence of commercial paper data in Banxico reports can be due to reasons such as no issuances or insignificant volume, potential errors, but it doesn't imply non-utilization of the instrument in the financial market. Therefore, it is necessary to analyze the available data for private certificates to obtain an additional perspective on the matter.
Through the use of pipelines, it is also possible to create custom variables by comparing absolute values between the first week of the year and the latest available week. This can be achieved using the Filter Dates step or by utilizing functions like "First" and "Last" to select the first and last weeks of the year. What's more, the "shift" function allows you to change the reference base and create an infinite number of new variables.
Mexico's Private Short Term Certificates Amount Outstanding has remained stable in recent weeks, with the highest value on April 28 and the lowest on May 5. Overall, Short-Term Private Debt Instruments Indicators paint a picture of relative stability in Mexico's private debt market. While there have been slight fluctuations in the value of Private Certificates Amount Outstanding, the Days to maturity have remained relatively consistent.
